Waec Model Questions Vol1 2018 Financial Accounting Question 48

A manufacturing concern produces a single product. During March the following data were recorded (all amounts in ₦): - Opening stock of raw materials: 200,000 - Purchases of raw materials (including freight of 80,000): 1,200,000 - Closing stock of raw materials: 150,000 - Direct labour incurred: 400,000 - Factory overhead is applied at an unknown rate r % of direct labour. - Opening work‑in‑process (WIP): 120,000 - Closing WIP: 80,000 - Units completed and transferred to finished goods: 500 - Standard cost per unit: 4,500 - The total variance (standard cost of units produced minus actual cost of goods manufactured) is a favourable variance of 30,000. Determine the total manufacturing cost actually incurred for the month of March and the overhead rate r (expressed as a percentage).